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Italian fashion businesses seek chinese cooperation (china)

Source: www.fibre2fashion.comDate: 12-09-2012Visits: 254

Eyeing expansion in China, which is heading towards becoming one of the biggest luxury product markets globally, Italian fashion houses have urged China to improve business conditions for European firms.

With an overall turnover of nearly US$ 160 billion yuan or US$ 25 billion per annum, China presently positions itself as the world’s third largest market for personal luxury goods, and is expected to surpass Japan and the US to reach the top position within the next three years.

However, European firms eyeing expansion in China’s fashion market face several difficulties like high import duties and extensive counterfeiting.

Hence, Italian fashion executives have called on China to reduce import duties, ease product testing conditions, which in China are the most stringent in the world, and to ease visa restrictions and enhance intellectual property protection, Gianluca Brozzetti, Chief Executive of Italian fashion house Roberto Cavalli, said while speaking at the Milano Fashion Global Summit.

While domestic sales of Italian fashion houses is waning amidst recessionary pressures, Italy-China Association, an Italian organisation that promotes ties between the countries, expects Chinese buyers to spend around ?1 billion or US$ 1.28 billion in Italy next year.

It is the steady demand from Asian buyers coming to Europe to satisfy their demand for brands like Gucci handbags and Prada shoes that is helping European luxury product firms like Salvatore Ferragamo and LVMH to stay afloat in the midst of the Euro-zone crisis.